Attys Dish on Escobar's FCA Impact 1 Year Later
June 16, 2017
The U.S. Supreme Court's decision one year ago in Universal Health Services v. Escobar has jolted False Claims Act litigation by creating a new approach to "implied certification" cases involving undisclosed noncompliance. Here, attorneys tell Law360 about key ways in which the decision has been applied.
David Nadler, Blank Rome LLP
"Escobar is perhaps the most significant FCA case in a generation. With its practical focus on the FCA’s 'rigorous' and 'demanding' materiality standard, the Supreme Court put reasonable constraints on the implied certification theory, which can have almost boundless implications and exposes contractors to almost unlimited FCA liability. The Supreme Court rightly instructed courts to weed out cases that do not meet this rigorous standard, which is an important step toward ensuring that ordinary breach of contract issues are not the basis of FCA liability. Though the lower courts are still working through how to properly apply Escobar, the Supreme Court has signaled that the implied certification theory has limits and that those limits must be recognized and enforced."
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"Attys Dish on Escobar's FCA Impact 1 Year Later," by Jeff Overley was published in Law360 on June 16, 2017.